Not really new just an extension to a new class of institutions
Reader comment on: 'Orderly Liquidation Authority'
Submitted by lyle (United States), May 13, 2010 17:07
The FDIC already has the authority to do just what you say to banks that take deposits, just not to the holding company. (WAMU the bank went under the holding company filed chapter 7 therafter wiping out those foolish enough to loan to it) The fdic places depositors above all other creditors today, in the closure of a bank. This just extends the authority to the holding company.
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The Future of Capitalism replies:
Yeah but those are institutions with insured depositors. If you don't have insured depositors why should you be subject to this?
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